The
purchase price of approximately NZ$103.1 million
(approximately AU$81.3 million) comprises the headline
purchase price of NZ$101.6 million plus an estimated
increase in net tangible assets of approximately NZ$1.5
million for the month of October. TOWER Medical has
approximately NZ$10 million in surplus capital. The purchase
price may be further adjusted following preparation of
completion accounts.

The purchase price represents an
acquisition multiple of approximately 7.0x pro-forma NPAT1
for the 12 months ended 30 September 2012.

nib has
received all necessary regulatory approvals, while
conditions precedent in respect to the purchase of TOWER
Medical have also been satisfied.

nib’s Managing
Director, Mark Fitzgibbon, said: “based on the purchase
price the acquisition will be earnings per share accretive
from year one."

“We’re excited about our prospects in
New Zealand. We’ve acquired a very good business and
we’re confident it will provide us with a solid platform
for growing private health insurance participation in New
Zealand and our market share,” Mr Fitzgibbon said.

TOWER
Group Managing Director Rob Flannagan said today that all
conditions of the sale had now been satisfied.

“TOWER
and nib look forward to building a long-term distribution
relationship that will deliver benefits to health customers
through the insights, expertise and strong track record in
medical insurance that nib will bring to the New Zealand
market,” he said.

The acquisition of TOWER Medical will
be funded through existing surplus capital and a NZ$70
million senior debt facility.

ENDS

1
Pro-forma NPAT of approximately NZ$14.7 million based on
statutory NPAT of NZ$13.2 million and pro-forma adjustment
of approximately NZ$1.5 million after-tax reflecting
re-allocation of corporate
costs.

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